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LB 724

Require the Department of Health and Human Services to conduct a cost study of behavioral health care rates

109th Legislature (2025-2026) Introduced by Dan Quick

Nebraska must study behavioral health care reimbursement rates to assess provider costs and inform future compensation policy decisions.

Notice of hearing for February 04, 2026
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Bill Summary · LB 724

Legislative bill overview

LB 724 mandates Nebraska's Department of Health and Human Services to conduct a comprehensive cost study examining behavioral health care rates across the state. The study would analyze current reimbursement structures, provider costs, and service delivery models to inform future policy decisions around behavioral health care compensation.

Why is this important

Behavioral health services—including mental health and substance abuse treatment—face persistent provider shortages and access gaps in many regions. A systematic cost analysis could identify whether current reimbursement rates are adequate to sustain provider networks and expand services, particularly in rural areas where behavioral health resources are critically limited.

Potential points of contention

  • Cost and scope ambiguity: The bill doesn't specify what "cost study" entails, timeline for completion, or budget allocation, leaving implementation details undefined and potentially contentious during appropriations discussions
  • Rate adjustment expectations: Stakeholders may disagree on whether the study is merely informational or intended to justify future rate increases, affecting buy-in from fiscal conservatives and behavioral health advocates differently
  • Provider data requirements: Requiring private providers and managed care organizations to submit detailed cost data could face resistance around competitive sensitivity and administrative burden

Compiled from official sources — confirm details with the bill’s official record.

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